Dictionary of Business Terms: selling climax
selling climax
sudden plunge in security prices when those who hold stocks or bonds panic and decide to dump their holdings all at once. Sometimes a selling climax can signal the bottom of a bear market, meaning that after the climax the market will start to rise.
Dictionary of Finance and Investment Terms: selling climax
selling climax
sudden plunge in security prices as those who hold stocks or bonds panic and decide to dump their holdings all at once. Technical analysts see a climax as both a dramatic increase in volume and a sharp drop in prices on a chart. To these analysts, such a pattern usually means that a short-term rally will soon follow since there are few sellers left after the climax. Sometimes, a selling climax can signal the bottom of a bear market, meaning that after the climax the market will start to rise.
